-- A net loss of $310 thousand for the quarter ended March 31, 2014 was
incurred as compared to net income of $92 thousand in the quarter ended
March 31, 2013;
-- Reported sales volumes decreased 19.0% to 34,100 hectolitres ("hl") for
the first quarter of 2014 as compared to 42,098 hl for the first quarter
of 2013;
-- Overall sales volumes were negatively impacted by aggressive and growing
competition in the Alberta beer market, reduced promotional pricing
activity, discontinuance or delay of certain package configurations and
poor spring weather;
-- Volume growth occurred in premium-priced brands, including Fowl Mouth
ESB-Big Rock's best-selling Brewmaster's Edition beer to date;
-- The Corporation released four new limited edition beers in the first
quarter and expects to release 25 additional limited edition products
during the remainder of 2014;
-- New products and initiatives introduced subsequent to the first quarter
are expected to provide incremental sales volumes with partial benefit
in the second quarter and full benefit in the third quarter; and
-- Big Rock's new brewery in British Columbia is under construction, with
expected production and sales in the third quarter of 2014.
Financial and Operating Highlights Table
Three months ended
March 31
$ thousands (unless otherwise stated) 2014 2013
----------------------------------------------------------------------------
Sales volumes (hectolitres or hl) 34,100 42,098
Net revenue 7,147 9,004
Operating profit (loss) (420) 129
Net income (loss) (310) 92
Income (loss) per share (basic and diluted) $ (0.05) $ 0.02
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Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "plans", "expects", "intends" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release not be unduly relied upon by investors as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this News Release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this News Release contains forward-looking statements pertaining to the following:

-- the number of additional limited edition products to be released;
-- the expectation that the new brewery in British Columbia will be
operational within the third quarter; and
-- the timing of new products and initiatives and the extent to which they
will provide incremental sales volumes.

With respect to the forward-looking statements listed above and contained in this News Release, management has made assumptions regarding, among other things:

-- Big Rock will be able to secure all required regulatory approvals to
construct the new British Columbia facility and to market the products
produced at such facility; and
-- New products and services introduced will result in incremental sales
volumes.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include, but are not limited to:

-- the inability to secure the requisite regulatory approvals to market the
full production of the new facility in British Columbia within the
timeframe indicated; and
-- the inability to secure and complete construction services for the new
facility within the timeframe indicated;

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this News Release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

Big Rock Brewery Inc. produces premium, all-natural craft beers. Big Rock boasts a family of exceptional ales and lagers, Rock Creek Cider®, an ongoing selection of seasonal beers released through the Brewmaster's Limited Edition and cutting-edge, small-batch brews released through the Alchemist Edition.

The following is Management's Discussion and Analysis ("MD&A") of the financial condition and results of operations of Big Rock Brewery Inc. (the "Corporation" or "Big Rock") for the three months ended March 31, 2014, as compared to the same period in 2013.

This MD&A should be read in conjunction with the unaudited consolidated financial statements of the Corporation and accompanying notes as at and for the three months ended March 31, 2014 (the "Financial Statements") and in conjunction with the December 30, 2013 audited consolidated financial statements and MD&A contained within our 2013 Annual Report. The financial statements have been prepared using International Financial Reporting Standards ("IFRS"). All amounts are reported in thousands of Canadian dollars and comparative figures have been restated using IFRS, unless otherwise noted.

Readers should also read the "Forward-Looking Statements" contained at the end of this document.

Big Rock stands out as a Canadian producer, marketer, and distributor of premium quality specialty craft beers. The Corporation has sales and distribution facilities in Calgary and Edmonton, sales staff resident in Alberta, British Columbia, Saskatchewan, Manitoba and an agency arrangement for product sales in Ontario and the Atlantic Provinces. Big Rock products are sold in six provinces and two territories in Canada and also exported to Korea.

INDUSTRY TRENDS AND INDICATORS

The beer industry in Canada has become increasingly polarized, with growth occurring in value-priced products at one end of the spectrum and in premium craft beers at the other end. This growth is largely at the expense of products in the middle of the spectrum, which have been declining steadily over the past several years. Additionally, there is significantly more competitive activity in Alberta than in other Canadian markets, as represented by faster growth in the number of products listed in Alberta than the growth in sales volumes. In other major craft beer markets, such as British Columbia and Ontario, volume growth in craft beer has outpaced growth in product listings. Big Rock's principal market is Alberta and so the Corporation has been disproportionately affected by the industry trends in Alberta. Big Rock's shift in emphasis from volume growth to a focus on maximization of cashflow and operating profit has meant a deliberate reduction in volumes as promotional pricing activities were scaled back. The combined impact of these factors has resulted in a decline in Big Rock's sales volumes of 19.0% for the three months ended March 31, 2014.

SELECTED QUARTERLY FINANCIAL INFORMATION

The following is a summary of selected financial information of the Corporation for the last eight completed quarters:

Big Rock experiences seasonal fluctuations in volumes, net sales revenue and net income with the second and third quarters typically being the highest and the first and fourth being the lowest. These seasonal variations are dependent on numerous factors, including weather, timing of community events, consumer behaviour, customer activity and overall industry dynamics, specifically in western Canada. The selected quarterly information is consistent with these expectations and industry trends.

RESULTS OF OPERATIONS

While sales volumes decreased 19.0% for the three months ended March 31, 2014 as compared to the same period last year, Big Rock's net revenue for the three months ended March 31, 2014 decreased 20.6% to $7,147 compared to $9,004 in 2013. The decrease in net revenue is a result of reduced volumes combined with higher excise tax per hl in 2014 due to timing.

For the three months ended March 31, 2014, operating losses totalled $420 compared to an operating profit of $129 for the same period last year. The decrease in operating profits was primarily due to reduced volumes.

Net sales revenues include product sales for beer and cider. For the three months ended March 31, 2014, net sales revenue decreased $1,857 (20.6%) compared to the same period of 2013. The decrease was primarily attributable to lower sales volumes, which decreased 19.0% to 34,100 hl from 42,098 hl and higher per hl excise charges. The volume decrease was a result of several factors: less extensive promotional pricing activity, reduced availability of cider and mixed packs in the quarter as a result of the proprietary bottle changeover, non-renewal of an unprofitable private label contract which expired at the end of 2013, discontinuance of certain package configurations and the impact on certain beers in the "core" category as a result of aggressive and growing competition in the Alberta market. Volume growth occurred in premium-priced signature brands.

Management believes that a strategic focus on geographical regions that offer maximal growth and profit potential, together with continued product innovation and concomitant premium pricing to be key elements of Big Rock's future profit growth strategy.

Geographically, Alberta and British Columbia continued to represent the largest shares of the Corporation's sales, consistent with management's focus on the western provinces.

For the three months ended March 31, 2014, total cost of sales decreased by $632 compared to the same period last year, as described below:

-- For the quarter ended March 31, 2014, costs relating to ingredients and
packaging materials decreased $224 due primarily to lower production
volumes.
-- Big Rock's labour costs relating to production are primarily fixed in
nature. When compared to the same period in 2013, labour charges for the
first quarter of 2014 remained consistent.
-- Overhead costs include utilities, repairs and maintenance and other
production related amounts, which are primarily fixed in nature.
Overhead costs at March 31, 2014 increased by $67 compared to the three
months ended March 31, 2013, due primarily to higher utility charges.
-- Inventory movement is a timing difference relating to the absorption of
production costs into finished goods inventory on the statement of
financial position, and the eventual charge to income for those costs as
finished goods inventory is sold. For the three months ended March 31,
2014, charges relating to inventory movement decreased by $293 compared
with the same period last year.
-- Big Rock includes depreciation charges on production equipment used to
convert raw materials to finished goods as part of its cost of sales and
finished goods inventory. The primary drivers of changes in depreciation
were the disposition of all industry standard bottles in December 2013
and inventory movement in the period.

On a per hectolitre basis, cost of sales increased by $4.86 per hl (4.9%) for the three months ended March 31, 2014 compared to the same period in 2013. The effect of lower volumes caused increases in per hl amounts for primarily fixed costs such as overheads and labour costs. Ingredients and packaging materials also increased due to costs associated with the adoption of Big Rock's new proprietary-mould bottle. These increases were partially offset by inventory movement and reduced depreciation, as detailed in the following table:

For the three months ended March 31, 2014, selling expenses decreased by $639 compared with the same period last year, as detailed below:

-- Delivery and distribution costs decreased primarily as a result of lower
volumes delivered in the quarter compared to the same period last year.
-- Salaries and benefit costs decreased by $483 for the first quarter due
primarily to reduced severance costs as well as lower headcount and
bonus accruals when compared to the same period last year.
-- Marketing costs increased by $134 primarily as a result of higher
consulting costs relating to website redesign.
-- Regional sales expenses decreased by $196 due mainly to reduced spending
on sales programs. This was partially offset by higher tastings
expenditures as a result of increased focus on consumer trial.

On a per hectolitre basis, selling expenses decreased by $0.11 per hl (0.1%) for the three months ended March 31, 2014, when compared to the same period in 2013, mainly as a result of a decrease in salaries and benefits offset by increases in marketing and a slight increase in delivery and distribution, as detailed in the following table:

For the three months ended March 31, 2014, general and administrative expenses decreased by $36 compared with the same period last year as detailed below:

-- Salaries and benefit costs decreased by $53 for the three months ended
March 31, 2014 as compared to the same period in 2013 due to a lower
bonus accrual and reduced employee relations expenses.
-- Office, administration and other increased $30 due to higher IT and
office supply expenses.
-- Reporting and filing fees for the three months ended March 31, 2014 were
lower than in the first quarter of 2013, due to timing of TSX filing
fees.
Finance costs
Three months ended
March 31
$ thousands (unless otherwise stated) 2014 2013 Change
----------------------------------------------------------------------------
Interest on long-term debt 8 20 (12)
Interest on operating facility (1) (13) 12
----------------------------------------------------------------------------
Total finance costs 7 7 -
----------------------------------------------------------------------------
Weighted average effective interest rate 4.00% 4.22%

The principal amount of long-term debt was $2,595 as at March 31, 2014 compared to $1,808 as at March 31, 2013. The interest rates applicable to all loans and borrowings are based on the lender's prime rate. The decrease in interest expense for the three months ended March 31, 2014 compared to the same period last year is due to the debt being outstanding for a shorter period in 2014 than in 2013.

For the three months ended March 31, 2014, depreciation expense included in cost of sales decreased by $180 compared with the same period last year due to the accelerated depreciation and subsequent disposal of industry standard bottles, together with associated packaging equipment, in favour of a proprietary-mould bottle introduced in December 2013. New proprietary-mould bottles are inventoried and expensed through cost of sales as consumed. Amortization expense, which relates to intangible assets, which include software, naming rights and website costs, remained consistent with the same period of last year. Other depreciation, which relates to non-production assets, also remained fairly consistent with the prior period.

Other income includes restaurant royalties, miscellaneous income (primarily from the sale of spent grains and rental of yard space), gains or losses on asset disposals and net revenues from tours, hospitality, and the dry goods store.

A current income tax expense of $23 was recorded for the three months ended March 31, 2014 (2013 - $110). These taxes arise from the transitional provisions on the taxation of partnership deferral structures.

During the three months ended March 31, 2014, the Corporation recorded deferred income tax recovery of $91, compared to a recovery of $34 for the same period last year.

The deferred income tax provision differs from the statutory rate of 25.19% (2013 - 25.10%) due to permanent differences between the carrying amounts of assets and liabilities for accounting purposes and the amounts used for income tax purpose, as well as the effect of non-deductible amounts.

FINANCIAL CONDITION

The following chart highlights significant changes in the Consolidated Balance Sheets from December 30, 2013 to March 31, 2014:

The Corporation includes as capital its common shares plus short-term and long-term debt, net of cash balances, and has no externally imposed capital requirements. The Corporation's objectives are to safeguard the Corporation's ability to continue as a going concern, in order to support the Corporation's normal operating requirements and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. This allows management to maximize the profitability of its existing assets and create long-term value and enhance returns for its shareholders.

The Corporation manages the capital structure through prudent levels of borrowing, cash-flow forecasting and working capital management, and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Corporation may issue new shares, issue new debt, acquire or dispose of assets or adjust the amount of cash and cash equivalents. In order to facilitate the management of its capital requirements, the Corporation prepares annual expenditure budgets, which are approved by the Board of Directors. These budgets are updated as necessary depending on various factors, including capital deployment, results from operations, and general industry conditions.

In addition, the Corporation monitors its capital using ratios of (i) earnings before interest, taxes, depreciation and amortization ("EBITDA") to long-term debt and (ii) EBITDA to interest, debt repayments and dividends. EBITDA to interest, debt repayments and dividends is calculated by dividing the combined interest, debt repayments and dividend amounts by EBITDA and EBITDA to long-term debt is calculated by dividing long-term debt by EBITDA. EBITDA is a non-GAAP measure. For a reconciliation of EBITDA to net income, the nearest GAAP measure, see Financing Activities later in this MD&A.

These capital policies provide Big Rock with access to capital at a reasonable cost.

As discussed later in this MD&A, all of the borrowing facilities have financial tests and other covenants customary for these types of facilities and must be met at each reporting date.

Big Rock is authorized to issue an unlimited number of common shares with no par value.

The Corporation's shares trade on the Toronto Stock Exchange under the symbol BR. As at May 12, 2014 there were 6,875,928 issued and outstanding shares and the closing price was $18.25 per share. Based upon 6,875,928 issued shares, the Corporation has an approximate market capitalization of $125.5 million.

On April 10, 2014, Big Rock closed an equity offering to sell 799,250 common shares at $17 per share for gross proceeds of $13.6 million. Share issue costs have been estimated at $1.0 million, which results in net proceeds of $12.6 million.

Share Based Compensation Plan

During the three months ended March 31, 2014, the Corporation granted 58,500 (2013 - 58,500) stock options to officers, employees and directors at an exercise price of $18.06 with an expiry date of March 17, 2018. The weighted average fair value of the options issued during the three months ended March 31, 2014 was estimated using the Black-Scholes option pricing model.

A share-based compensation charge of $114 for the options granted in the three months ended March 31, 2014 (2013 - $94) was recognized in statement of comprehensive income. Share-based compensation costs have been included in general and administrative expenses.

In March 2012, the Corporation introduced a share appreciation rights ("SAR") plan as a component of overall compensation of directors, officers and employees. These SARs vest immediately and are exercisable for five years thereafter.

In March 2014, the Corporation granted 53,900 SARs with an exercise price of $18.06 (to be settled in cash).

At the end of each reporting period, the fair value of the SARs, as determined by the Black-Scholes model, is recorded as a liability on the balance sheet and recorded as compensation expense.

As at March 31, 2014, 252,500 SARs were outstanding (December 30, 2013 - 214,800). During the three months ended March 31, 2014, 53,900 SARs were issued (2013 - 54,300), 16,200 SARs were exercised (2013 - nil) and no SARs expired (2013 - nil). As at March 31, 2014, the fair value of the SARs was calculated and resulted in a liability of $669 (December 30, 2013 - $687) and a charge of $56 being recorded in general and administrative expenses (December 30, 2013 - $449).

At March 31, 2014, the weighted average fair value of the SARs issued at the grant date was estimated using the Black-Scholes option pricing model. The weighted average assumptions used for the calculations were:

Cash used by operating activities for the three months ended March 31, 2014 totalled $4,221, a decrease of $4,620 compared to the same period last year, mainly as a result of the change in non-cash working capital and the net loss.

Investing Activities

For the three months ended March 31, 2014, capital spending, net of dispositions, was $63 compared to $175 for the same period in 2013. Capital spending, net of dispositions, included $nil (2013 - $nil) for new kegs, $nil (2013 - $89) for glass containers, $11 (2013 - $40) for the purchase of new vehicles, net disposition $77 (2013 - net purchases of $20) of brewing and packaging equipment, $67 (2013 - $16) relating to buildings and warehouses, $nil (2013 - $2) for leasehold improvements, $52 (2013 - $8) for the purchase of office furniture and equipment and $10 (2013 - $nil) for the purchase of intangible assets.

Financing Activities

Cash provided by financing activities for the three months ended March 31, 2014 increased by $3,633 compared with the same period in 2013. The increase is a result of drawing on the operating loan facility during the quarter, being in an overdraft position in the bank account and the exercise of options.

On February 14, 2013, Big Rock signed a commitment letter for a $12 million revolving operating loan facility which is available to payout previous borrowings as well as for general operating purposes and funding capital expenditure requirements. For prime-based loans, interest will be payable at the financial institution's prime plus 1.0 percent; for guaranteed notes, the acceptance fee is payable at 2.75 percent; and for letters of credit, the fee is payable at 2 percent with a minimum fee of $100. The operating loan matures after a term of 3 years and any undrawn amounts under the facility will expire on May 31, 2016, if no extension has been granted. Collateral for these borrowings is a general assignment of Big Rock's assets.

As at March 31, 2014, a balance of $2,595 (December 30, 2013 - nil) was outstanding on the facility.

The facility imposes a number of positive and negative covenants on Big Rock, including the maintenance of certain financial ratios: EBITDA to long-term debt; and EBITDA to interest, debt repayments and dividends. As at March 31, 2014, Big Rock was in compliance with all covenants.

The calculation of EBITDA is a non-GAAP measure, whose nearest GAAP measure is net income with the reconciliation between the two as follows:

Each quarter the Board of Directors sets the cash dividend per share, considering the Corporation's requirements for capital expenditures, debt servicing, and current operating results compared to budget as well as projected net incomes.

The amount of dividends declared depends upon numerous factors, including profitability, fluctuations in working capital, sustainability of margins during seasons when sales volumes and income are traditionally low, debt repayments, capital expenditures and the actual cash amounts available for distribution by the Corporation.

The following cash dividends have been announced by the Corporation to date in 2014:

Big Rock declared dividends of $1,215, or $0.20 per share, for the three months ended March 31, 2014 (2013 - $1,214 or $0.20 per share). Dividends were paid on April 15, 2014 (April 15, 2013). Dividends declared to shareholders may exceed net income generated during the period. Net income may not be an accurate indicator of the Corporation's liquidity, as it may be comprised of significant charges not involving cash including future income tax, changes to non-cash working capital and amortization related expenses.

Big Rock's intention is to continue to reward its investors with dividends consistent with the performance of the brewery. In determining actual dividend levels, the Board will consider the financial performance, capital plans, growth opportunities, expectations of future economic conditions and other factors. Since the level of dividends is highly dependent upon cash flow generated from operations, which fluctuates significantly in relation to changes in financial and operational performance, commodity prices, interest and exchange rates and many other factors, future dividends cannot be assured. Dividends are subject to the risk factors described herein and in the Corporation's public disclosure documents including its current Annual Information Form.

Cash dividends are not guaranteed and will fluctuate with the performance of the business.

CRITICAL ACCOUNTING ESTIMATES

Stock-based compensation

The Corporation recognizes compensation expense on options with no cash settlement feature at time of grant as well as on changes in the fair value of any outstanding SARs at each reporting date. Stock based compensation expense with respect to options recognized during the three months ended March 31, 2014 was $114 (2013 - $94), while the expense recognized with respect to SARs was $56 (2013 - $68) as discussed earlier in this MD&A.

Property, Plant and Equipment

Accounting for PP&E involves making estimates of the life of the assets, the selection of an appropriate method of depreciation and determining whether an impairment of the assets exists. These assessments are critical due to their potential impact on income.

At each date of the statement of financial position, the Corporation reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the assets belong.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of comprehensive income.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating- unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years.

Keg Deposits

The Corporation requires that customers pay a deposit for each keg purchased, which is subsequently refunded to customers via invoice credits or cash payments when kegs are returned and these deposits are reflected as a liability on the Corporation's balance sheet. In the normal course of business there are a percentage of kegs that are never returned for refund. As a result, the Corporation performs an analysis based on factors such as total kegs produced, current inventory rates and average keg turnover. In addition, return percentages are calculated and tracked to estimate an average keg turnover rate. Together this information is used to estimate a reasonable keg deposit liability at each reporting date. Any adjustments required to the keg liability account are applied to revenue.

RISKS RELATED TO THE BUSINESS AND INDUSTRY

Big Rock operates in an environment that is both highly competitive and highly government regulated. Due to the ongoing shifting effects of competition, the ability to predict future sales and profitability with any degree of certainty is limited. It is also difficult to anticipate changes in government regulation and legislation and the impact such changes might have on the Corporation's operations.

There is a continuing entry of premium and super premium beers from other craft breweries and the larger national and multi-national brewers with products that compete directly with craft beers. A large number of imports are also being sold in the same markets where Big Rock competes for business.

With the large choice of craft brands now available, and the advertising initiatives of pseudo-craft divisions of the major breweries, it is likely that competitive pressures on price will continue. As a result, the selling price may vary more frequently; however Big Rock believes it is in an excellent position to increase return on sales.

Big Rock requires various permits, licenses, and approvals from several government agencies in order to operate in its market areas. In Alberta, Big Rock's largest market, the Alberta Gaming and Liquor Commission provides the necessary licensing approvals. Other licenses have been obtained from various other government authorities. Management believes that Big Rock is in compliance with all licenses, permits, and approvals.

Each provincial authority has its own tax or "mark-up" structure by which fees are levied on brewers' sales within that jurisdiction. These regulations may be changed from time to time, which may positively or negatively impact Big Rock's profitability.

In 2012, the Alberta government commenced a review of its mark-up rates, but no changes to existing regulations have yet been announced. As Alberta is Big Rock's predominant market, any changes to this mark-up rate structure could have significant impacts on the Corporation's financial results.

Financial Risk

The Corporation's principal financial instruments are its outstanding amounts drawn from its credit facilities, which, after cash flow from operations, are its main source of financing. Other financial assets and liabilities arising directly from its operations and corporate activities include cash, accounts receivable, bank indebtedness, accounts payable, long term debt and distributions payable. The primary risks arising from the Corporation's financial instruments are credit risk, liquidity risk, commodity price risk, interest rate risk and foreign exchange risk, each of which are discussed below.

Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.

Credit Risk

Credit risk is the risk that the counterparty to a financial asset will default, resulting in the Corporation incurring a financial loss.

Big Rock has a concentration of credit risk because a majority of its accounts receivable are from provincial liquor boards, under provincially regulated industry sale and payment terms. The Corporation is not exposed to significant credit risk as payment in full is typically collected by provincial liquor boards at the time of sale and receivables are with government agencies. While substantially all of Big Rock's accounts receivable are from provincial government liquor authorities, the timing of receipts of large balances may vary significantly from period to period. The majority of product sold outside of Canada, which is included in GST and other receivables, is done so on a 'Cash on Delivery' basis with no credit risk.

Credit risk associated with the potential non-performance by financial instrument counterparties has been minimized through the careful selection of vendors, the development of long term vendor relationships and the selective use of written arrangements to guarantee supply and payment terms.

Liquidity Risk

Big Rock's principal sources of liquidity are its cash flows from operations and existing or new credit facilities. Liquidity risk is mitigated by maintaining banking facilities, continuously monitoring forecast and actual cash flows and, if necessary, adjusting levels of dividends to shareholders and capital spending to maintain liquidity.

Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Corporation's operations.

CIO, CTO & Developer Resources

Commodity Price Risk

The Corporation is exposed to commodity price risk in the areas of utilities (primarily electricity and natural gas), malted barley, water, glass and aluminum, where fluctuations in the market price or availability of these items could impact Big Rock's cash flow and production. To minimize the impact of this risk, the Corporation enters into contracts which secure supply and set pricing to manage the exposure to availability and pricing.

Big Rock's profitability depends on the selling price of its products to provincial liquor boards, which set minimum price thresholds. Although prices are otherwise controlled by the Corporation, they are subject to such factors as regional supply and demand, and to a lesser extent inflation and general economic conditions. As beer and cider sales are the only source of revenue for the Corporation, a 5% increase or decrease in these prices will result in a corresponding increase or decrease in revenue.

Interest Rate Risk

Big Rock is exposed to interest rate risk on the variable rate of interest incurred on the amounts due under operating and credit facilities and on interest earned on bank deposits. The cash flow required to service the interest on these facilities will fluctuate as a result of changes to market rates.

The Corporation has not entered into any derivative instruments to manage interest rate fluctuations; however, management monitors interest rate exposure and given the relatively low expected rate of change in prime interest rates feels the risk is immaterial. Big Rock evaluates the policies surrounding interest rates on an as needed basis and is confident that this policy is sufficient based on current economic conditions, combined with the minimal amount of debt required by the Corporation.

The fair value interest rate risk on bank deposits is insignificant as the deposits are short-term and the fair value of the Corporation's long-term debt does not change as interest rates change.

The weighted average interest rate incurred by the Corporation in the three months ended March 31, 2014 was 4.00% (2013 - 4.22%).

Foreign Exchange Risk

The Corporation currently transacts with only a few foreign suppliers providing small amounts of goods and thus has limited exposure to risk due to variations in foreign exchange rates. The Corporation has not entered into any derivative instruments to manage foreign exchange fluctuations; however, management monitors foreign exchange exposure.

The Corporation does not have any significant foreign currency denominated monetary liabilities.

For a more detailed discussion of risk factors that could materially affect Big Rock's results of operations and financial condition please refer to the Risk Factors section of the Corporation's Annual Information Form dated March 17, 2014 that is available on www.sedar.com.

FUTURE ACCOUNTING PRONOUNCEMENTS

IFRS Policies

The Corporation's interim financial statements as at and for the three months ended March 31, 2014 and 2013 have been prepared using the IFRS standards and interpretations currently issued. Accounting policies currently adopted under IFRS are subject to change as a result of new standards being issued with an effective date of December 31, 2013 or prior. A change in an accounting policy used may result in material changes to Big Rock's reported financial position, results of operations and cash flows.

Future accounting pronouncements

The IASB has issued the following pronouncements:

-- IFRIC 21 Levies has been issued which will be required to be adopted,
with retrospective application, effective for annual periods beginning
on or after January 1, 2014. This standard provides guidance on when to
recognise a liability for a levy imposed by a government whereby a
liability is recognised progressively if an obligating event occurs over
a period of time and immediately in full where obligation is triggered
on reaching a minimum threshold.
-- Amendments to IAS 32 Offsetting Financial Assets and Financial
Liabilities have been issued which will be required to be adopted, with
retrospective application, effective for annual periods beginning on or
after January 1, 2014. These amendments include clarification of the
meaning of "currently has a legally enforceable right to set-off" and
may change assets and liabilities eligible for net presentation.
-- Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial
Assets have been issued which will be required to be adopted, with
retrospective application, effective for annual periods beginning on or
after January 1, 2014. These amendments delete the requirement to
disclose the recoverable amount for each cash-generating unit for which
the carrying amount of goodwill or intangible assets with indefinite
useful lives allocated to that unit was significant in comparison with
the entity's total carrying amount of goodwill or intangible assets with
indefinite useful lives. In addition, the IASB added two disclosure
requirements: to provide additional information about the fair value
measurement of impaired assets when the recoverable amount is based on
fair value less costs of disposal and to provide information about the
discount rates that have been used when the recoverable amount is based
on fair value less costs of disposal using a present value technique.
-- IFRS 9 Financial Instruments has been amended, effective for annual
periods beginning January 1, 2015. The amended standard requires
classification of financial assets on the basis of the reporting
entity's business model objectives for managing those financial assets
and the characteristics of the contractual cash flows. As a result, both
the classification and measurement of certain financial assets may
change. Additionally, for liabilities designated at fair value through
profit and loss, fair value changes attributable to changes in credit
risk will be presented through other comprehensive income instead of net
income.

Early adoption of the above standards, amendment and interpretations is permitted. Big Rock has not early adopted these; however, the Corporation is currently assessing what impact the application of these standards or amendments will have on the financial statements of the Corporation.

DISCLOSURE CONTROLS AND PROCEDURES

The Corporation's management under the supervision of, and with the participation of, the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") of Big Rock Brewery Operations Corp. (the administrator of the Corporation), have designed and evaluated the effectiveness and operation of its disclosure controls and procedures, as defined under National Instrument 52 - 109 Certification of Disclosure in Issuers' Annual and Interim Filings ("NI 52-109"). Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in reports filed with Canadian securities regulatory authorities is recorded, processed, summarized and reported in a timely fashion. The disclosure controls and procedures are designed to ensure that information required to be disclosed by the Corporation in such reports is then accumulated and communicated to management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. Due to the inherent limitations in all control systems, an evaluation of the disclosure controls can only provide reasonable assurance over the effectiveness of the controls. The disclosure controls are not expected to prevent and detect all misstatements due to error or fraud. Based on the evaluation of disclosure controls and procedures, the CEO and CFO have concluded that the Corporation's disclosure controls and procedures are effective as of March 31, 2014.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

The Corporation's management under the supervision of, and with the participation of, the CEO and CFO, has designed and implemented internal controls over financial reporting ("ICFR"), as defined under NI 52-109. The Corporation's management used the COSO Internal Control over Financial Reporting - Guidelines for Smaller Public Companies (2006) as its framework.

The process used involved four steps as follows: establishment of a foundation, which involved assessing the tone at the top, the organization structure and baseline of current internal controls; design and execution, which involved prioritizing risk, identifying controls and evaluation of control effectiveness; assess and report, which involved summarizing and reporting on the findings; and conclusion on controls supported by documented evidence.

The purpose of internal controls over financial reporting is to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements in accordance with GAAP, focusing in particular on controls over information contained in the annual and interim financial statements. The internal controls are not expected to prevent and detect all misstatements due to error or fraud.

The CEO and CFO acknowledge responsibility for the design of ICFR and confirm that there were no changes in the Corporation's controls over financial reporting during the first quarter ended March 31, 2014, that have materially affected or are reasonably likely to materially affect the Corporation's internal control over financial reporting.

Based upon their evaluation of these controls as of March 31, 2014, the CEO and CFO have concluded that the Corporation's ICFR were effective as at that date. No material weaknesses existed within the Corporation's ICFR as of March 31, 2014. In addition, there were no material changes to Big Rock's internal controls over financial reporting since the most recent interim period.

OUTLOOK

Competition continues to intensify at the value-priced end of the beer spectrum, but is also increasing for premium craft beer, particularly in Alberta, which, unlike most other Canadian jurisdictions, has relatively few barriers to entry for out-of-province producers. Additionally, as part of a strategic plan to prioritize high-margin innovative new beers and to maximize profitability of existing products, Big Rock has continued to reduce the use of volume-inducing limited-time offers which has led to a decrease in volumes for the three months ended March 31, 2014 as compared to the same period in 2013.

In response to consumer-driven demand, management will continue to invest in targeted marketing opportunities to create brand awareness and to emphasize the innovation program, which will provide additional great beers to the Big Rock portfolio. Through reductions in the extent of promotional pricing activities and other initiatives, volumes may continue to decline but profits should increase over time.

In addition, management will continue to monitor and adjust the selling prices of its products, and will continue to actively manage operating costs, assess regional profitability and focus on operating efficiencies.

FORWARD LOOKING INFORMATION

This MD&A contains forward-looking information that reflects management's expectations related to expected future events, financial performance and operating results of the Corporation. Investors should not place undue reliance on forward-looking statements as the plans, intentions or expectations upon which they are based might not occur.

All statements, other than statements of historical fact included in the MD&A, may be forward-looking information. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements are not guarantees of our future performance and are subject to known and unknown risks, uncertainties and other factors that may cause Big Rock's actual results or events to differ materially from those anticipated in such forward-looking statements.

Big Rock believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward- looking statements included in this MD&A should not be unduly relied upon by investors as actual results may vary. These statements speak only as of the date of this MD&A and are expressly qualified, in their entirety, by this cautionary statement.

In particular this MD&A contains forward-looking statements pertaining to the following:

With respect to forward-looking statements listed above and contained in this MD&A, Big Rock has made assumptions regarding, among other things, the following:

-- financial performance and capital plans will not affect the ability to
pay dividends;
-- volumes in the current fiscal year will remain constant or will
increase;
-- input costs for brewing and packaging materials will remain constant or
will not significantly increase or decrease;
-- there will be no material change to the regulatory environment in which
Big Rock operates; and
-- there will be no supply issues with Big Rock's vendors.

Big Rock's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and as set out under the heading "Risk Factors" in the Corporation's 2013 Annual Information Form (as filed on SEDAR on March 17, 2014). Readers are cautioned that the foregoing lists of factors are not exhaustive.

The forward-looking statements contained in this MD&A are expressly qualified by this cautionary statement. Big Rock does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

ADDITIONAL INFORMATION

Additional information on the Corporation, including the Annual Information Form for the year ended December 30, 2013, can be found on SEDAR at www.sedar.com. Information about Big Rock can also be found on Big Rock's corporate website at http://bigrockbeer.com.

See accompanying notes to the condensed interim consolidated financial statements

1. CORPORATE INFORMATION

Big Rock Brewery Inc. ("Big Rock" or the "Corporation") is a publicly listed Corporation incorporated in Canada with limited liability under the legislation of the Province of Alberta and its shares are listed on the Toronto Stock Exchange and trade under the symbol "BR".

Big Rock is a regional producer of premium, all-natural craft beers and cider which are sold in six provinces and two territories in Canada, as well as exported to Korea. The head office, principal address and records office of the Corporation are located at 5555 - 76th Avenue SE, Calgary, Alberta, T2C 4L8.

These condensed interim consolidated financial statements (the "Financial Statements") include the accounts of Big Rock Brewery Inc. and all its wholly owned subsidiaries. Subsidiaries are those enterprises controlled by the Corporation. The following entities have been consolidated with the Big Rock financial statements:

Inter-company balances and transactions, and any unrealized gains arising from inter-company transactions, are eliminated in preparing the consolidated financial statements.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These Financial Statements are unaudited and have been prepared in accordance with IAS 34 Interim Financial Reporting ("IAS 34") using accounting policies consistent with the IFRS issued by the International Accounting Standards Board ("IASB") and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").

These Financial Statements should be read in conjunction with Big Rock's 2013 annual consolidated financial statements.

2.2 Basis of presentation

These Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business.

The Financial Statements have been prepared on the historical cost basis, presented in Canadian dollars and all values are rounded to the nearest thousand dollars except where otherwise indicated.

2.3 Future accounting pronouncements

The IASB has issued the following pronouncements:

-- IFRIC 21 Levies has been issued which will be required to be adopted,
with retrospective application, effective for annual periods beginning
on or after January 1, 2014. This standard provides guidance on when to
recognize a liability for a levy imposed by a government whereby a
liability is recognized progressively if an obligating event occurs over
a period of time and immediately in full where obligation is triggered
on reaching a minimum threshold.
-- Amendments to IAS 32 Offsetting Financial Assets and Financial
Liabilities have been issued which will be required to be adopted, with
retrospective application, effective for annual periods beginning on or
after January 1, 2014. These amendments include clarification of the
meaning of "currently has a legally enforceable right to set-off" and
may change assets and liabilities eligible for net presentation.
-- Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial
Assets have been issued which will be required to be adopted, with
retrospective application, effective for annual periods beginning on or
after January 1, 2014. These amendments delete the requirement to
disclose the recoverable amount for each cash-generating unit for which
the carrying amount of goodwill or intangible assets with indefinite
useful lives allocated to that unit was significant in comparison with
the entity's total carrying amount of goodwill or intangible assets with
indefinite useful lives. In addition, the IASB added two disclosure
requirements: to provide additional information about the fair value
measurement of impaired assets when the recoverable amount is based on
fair value less costs of disposal and to provide information about the
discount rates that have been used when the recoverable amount is based
on fair value less costs of disposal using a present value technique.
-- IFRS 9 Financial Instruments has been amended, effective for annual
periods beginning January 1, 2015. The amended standard requires
classification of financial assets on the basis of the reporting
entity's business model objectives for managing those financial assets
and the characteristics of the contractual cash flows. As a result, both
the classification and measurement of certain financial assets may
change. Additionally, for liabilities designated at fair value through
profit and loss, fair value changes attributable to changes in credit
risk will be presented through other comprehensive income instead of net
income.

Early adoption of the above standards, amendment and interpretations is permitted. Big Rock has not early adopted these; however, the Corporation is currently assessing what impact the application of these standards or amendments will have on the financial statements of the Corporation.

Revenue for Alberta represents gross sales to the provincial liquor control board less excise taxes and commissions arriving at the net proceeds to Big Rock. Revenue for other provincial jurisdictions represents net sales to the liquor control boards, after excise taxes and commissions. Excise taxes are assessed on beer production at tiered rates up to $31.22 per hectolitre, and provincial liquor control board commissions cover distributions and other service charges.

During the three months ended March 31, 2014, charges were recorded to net income relating to obsolete, damaged or unsellable packaging inventory of $23 (2013 - $76) and relating to promotional and resale goods and damaged finished goods inventory of $36 (2013 - $nil).

In the three months ended March 31, 2014, there were no reversals of amounts previously charged to income in respect of write-downs of inventory (2013 - $nil).

The Corporation's receivables arise from three main sources: trade receivables from the sale of beer and cider to provincial liquor boards, supplier rebates and other amounts. Other receivables include amounts due from sales to international customers and GST balances. The accounts receivable balances are broken down as follows:

Big Rock is authorized to issue an unlimited number of common shares with no par value.

13. SHARE-BASED PAYMENTS

13.1 Stock option plan

The Corporation has a stock option plan which permits the Board of Directors of the Corporation to grant options to acquire common shares of the Corporation at the volume weighted average closing price for the five days preceding the date of grant. The Compensation Committee determines and makes recommendations to the Board of Directors as to the recipients of, and nature and size of, share-based compensation awards in compliance with applicable securities law, stock exchange and other regulatory requirements - including the terms of the option plan. The Corporation is authorized to issue options for a maximum of 10% of the issued and outstanding common shares pursuant to the stock option plan.

The general terms of stock options granted under the amended plan include a maximum exercise period of 5 years and vesting immediately.

On March 17, 2014, the Corporation granted 58,500 options at an exercise price of $18.06 with an expiry date of March 17, 2018.

The weighted average fair value of the options issued at the grant date was estimated using the Black-

Scholes option pricing model. The weighted average assumptions used for the calculations were:

A share-based compensation charge of $114 for the options granted in the three months ended March 31, 2014 (2013 - $94) was recognized in statement of comprehensive income. Share-based compensation costs have been included in general and administrative expenses.

13.2 Stock appreciation rights plans

In March 2012, the Corporation introduced a share appreciation rights ("SAR") plan as a component of overall compensation of directors, officers and employees. These SARs vest immediately and are exercisable for five years thereafter.

In March 2014, the Corporation granted 53,900 SARs with an exercise price of $18.06 (to be settled in cash).

At the end of each reporting period, the fair value of the SARs, as determined by the Black-Scholes model, is recorded as a liability on the balance sheet and recorded as compensation expense.

As at March 31, 2014, 252,500 SARs were outstanding (December 30, 2013 - 214,800). During the three months ended March 31, 2014, 53,900 SARs were issued (2013 - 54,300), 16,200 SARs were exercised (2013 - nil) and no SARs expired (2013 - nil). As at March 31, 2014, the fair value of the SARs was calculated and resulted in a liability of $669 (December 30, 2013 - $687) and a charge of $56 being recorded in general and administrative expenses (December 30, 2013 - $449).

At March 31, 2014, the weighted average fair value of the SARs issued at the grant date was estimated using the Black-Scholes option pricing model. The weighted average assumptions used for the calculations were:

On February 14, 2013, Big Rock signed a commitment letter for a $12 million revolving operating loan facility which is available to payout previous borrowings as well as for general operating purposes and funding capital expenditure requirements. For prime-based loans, interest will be payable at the financial institution's prime plus 1.0 percent; for guaranteed notes, the acceptance fee is payable at 2.75 percent; and for letters of credit, the fee is payable at 2 percent with a minimum fee of $100. The operating loan matures after a term of 3 years and any undrawn amounts under the facility will expire on May 31, 2016, if no extension has been granted. Collateral for these borrowings is a general assignment of Big Rock's assets.

The facility imposes a number of positive and negative covenants on Big Rock, including the maintenance of certain financial ratios. As at March 31, 2014, Big Rock was in compliance with all covenants.

As at March 31, 2014, $2,595 (December 30, 2013 - nil) was outstanding on the facility.

15. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities of the Corporation are principally comprised of amounts outstanding for trade purchases relating to brewing, selling, and general and administrative activities. The usual credit period taken for trade purchases is between 30 to 90 days.

The following is an aged analysis of the trade and other payables:
March 31, December 30,
2014 2013
----------------------------------------------------------------------------
Less than 30 days $ 3,103 $ 4,096
30 - 60 days - -
60 - 90 days - -
Over 90 days 4 4
----------------------------------------------------------------------------
Total accounts payable and accrued liabilities $ 3,107 $ 4,100
----------------------------------------------------------------------------

16. DIVIDENDS PAYABLE

Big Rock declared dividends of $1,215, or $0.20 per share, for the three months ended March 31, 2014 (2012 - $1,214 or $0.20 per share). Dividends were paid on April 15, 2014 (April 15, 2013).

Over the long term it is management's intention that Big Rock's dividends to its shareholders are funded by cash flow from operating activities with the remaining cash from operations directed towards capital spending and debt repayments. The Corporation intends to provide dividends to shareholders that are sustainable to the Corporation considering its liquidity and long-term operational strategies. Since the level of dividends is highly dependent upon cash flow generated from operations, which fluctuates significantly in relation to changes in financial and operational performance, commodity prices, interest and exchange rates and many other factors, future dividends cannot be assured.

Dividends declared to shareholders may exceed net income generated during a given period. Net income may not be an accurate indicator of the Corporation's liquidity, as it may be comprised of significant items not involving cash including deferred income tax and depreciation and amortization related expenses.

17. CAPITAL RISK MANAGEMENT

The Corporation includes as capital its common shares plus short-term and long-term debt, net of cash balances, and has no externally imposed capital requirements. The Corporation's objectives are to safeguard the Corporation's ability to continue as a going concern, in order to support the Corporation's normal operating requirements and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. This allows management to maximize the profitability of its existing assets and create long-term value and enhance returns for its shareholders.

The Corporation manages the capital structure through prudent levels of borrowing, cash-flow forecasting, and working capital management, and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Corporation may issue new shares, issue new debt, acquire or dispose of assets or adjust the amount of cash and cash equivalents. In order to facilitate the management of its capital requirements, the Corporation prepares annual expenditure budgets, which are approved by the Board of Directors. These budgets are updated as necessary depending on various factors, including capital deployment, results from operations, and general industry conditions.

In addition, the Corporation monitors its capital using ratios of (i) earnings before interest, taxes, depreciation and amortization ("EBITDA") to long-term debt and (ii) EBITDA to interest, debt repayments and dividends. EBITDA to interest, debt repayments and dividends is calculated by dividing the combined interest, debt repayments and dividend amounts by EBITDA and EBITDA to long -term debt is calculated by dividing long-term debt by EBITDA.

These capital policies, which remain unchanged from prior periods, provide Big Rock with access to capital at a reasonable cost.

The Corporation conducts its business as a single operating segment being the producer of craft beer and cider in Canada. All property, plant and equipment are situated in Canada. Investment revenues were earned from domestic sources.

20. LEASES

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or the arrangement conveys a right to use an asset. Leases which transfer substantially all the risks and benefits of ownership to Big Rock are classified as finance leases. The leased asset is recognized at the lower of the fair value of the leased property or the present value of the minimum lease payments. Finance assets are depreciated over the shorter of the estimated useful life of the asset and the lease term. Other leases are classified as operating leases and payments are amortized on a straight-line basis over the lease term.

----------------------------------------------------------------------------
Less than one year $ -
One to five years 16
After five years 283
----------------------------------------------------------------------------
Total $ 299
----------------------------------------------------------------------------

21. SUBSEQUENT EVENT

On April 10, 2014, Big Rock closed an equity offering to sell 799,250 common shares at $17 per share for gross proceeds of $13.6 million. Share issue costs have been estimated at $1.0 million, which results in net proceeds of $12.6 million.

22. APPROVAL OF THE FINANCIAL STATEMENTS

The Financial Statements of Big Rock Brewery Inc. for the three months ended March 31, 2014 were approved and authorized for issue by the Audit Committee on May 12, 2014.

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Fortunately, my daughter was nearly home, so she got the car home, shut it down and called me immediately (I was on the road somewhere…Washington DC, Philadelphia, Knoxville, Chicago, Toronto…I don’t even remember where anymore). I called my trusty mechanic (Chuck) and he was able to work my car into the schedule when I got ba...

With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterp...

Almost a year ago, I wrote these words, "Technology has reached the tipping point for me, it moved from a help to a hindrance." The plethora of adrenaline- and endorphin-inducing mobile apps, 24x7 news, notifications, alerts and updates, drip fed my brain and hindered my "deep work and deep thoughts." In Cal Newport's new book titled, Deep Work he posits that most knowledge workers need concentration and substantial time, dedicated and uninterrupted, to produce their best work. He argues that a lot of technologies and open office layouts today inhibit creativity, "deep work" and "deep thoughts...

Predictions can be enlightening as we round out the end of the year, and industry analysts covering the Industrial Internet of Things (IIoT) have begun forecasting what to expect in 2017. In the ever changing digital business landscape, companies need to keep a pulse on the technology and regulatory environments to have direction on where to focus their efforts. Over the past few years, IIoT has taken on the shared title of industry 4.0, as new ways of connecting businesses and consumers impact systems infrastructures and technology integrations across many, if not all. business lines.

The holiday season is nearly upon us (I’ve already heard Christmas songs being played…really?) and retailers are usually the big winners during the holiday season. However, leading retailers are already thinking beyond the current holiday season, and not just from marketing and merchandising perspectives. These leading retailers are considering how this holiday season – and the resulting wealth of customer, product and operational data – can be converted into new analytic insights that can be used to optimize key business processes, uncover new monetization opportunities and create a more comp...

I was on a high-rise construction site 34-floors above the city. I was talking to the construction crew when a fight broke out. There was an explosion and the floor collapsed. I removed the virtual reality (VR) goggles and laughed. It was so real. The VR solutions provided an incredible experience, almost like being there. As good as my experience was, it was not reality. It was a controlled pre-programmed experience - a notional idea. Today, however, VR and sensor technologies enable a notional idea to become reality – a Real-Reality.

The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals, as experts estimate that “as-a-service” cloud sourcing will increase from today’s 15% to 35% by 20...

Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York
The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York.
Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flows, processes and sensor data, and analyze/react to real-time events and messages as well as big dat...

As we enter the final week before the 19th International Cloud Expo | @ThingsExpo in Santa Clara, CA, it's time for me to reflect on six big topics that will be important during the show. Hybrid Cloud: This general-purpose term seems to provide a comfort zone for many enterprise IT managers. It sounds reassuring to be able to work with one of the major public-cloud providers like AWS or Microsoft Azure while still maintaining an on-site presence.

2016 brought about more cyberattacks than we thought possible, especially involving ransomware, and we definitely won't see that trend breaking stride in 2017. By next year, we expect every single adult in the US will know a blood relative that has had their identity stolen - the Internal Revenue Service reported that 2.7 million people had their identities stolen in 2014 and according to TransUnion, 19 people fall victim to identity theft every minute.

There’s a funny thing about digital transformation: we are simultaneously over-hyping it and understating it. On the one hand, every tech company in the world is talking about it. It doesn’t matter how mundane the technology; every company is somehow relating their products to digital transformation.
On the other, many people are failing to grasp the import and impact of what digital transformation really means. In far too many cases, business and IT leaders are dismissing it as nothing more than a marketing ploy. The unfortunate result is that the over-hypedness of digital transformation i...

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.